CHGG stock rose more than 8% in pre-market trading on February 8, 2022, after the company reported EPS and revenue beats.
Chegg price target raised to $35 from $32 at BMO Capital
BMO Capital analyst Jeffrey Silber raised the firm’s price target on Chegg to $35 from $32 but keeps a Market Perform rating on the shares. Improved trends later in the quarter drove the company’s Q4 earnings beat, and the management also offered greater visibility on International exposure and the cadence of the business, with FY22 guidance above Street expectations, the analyst tells investors in a research note. Silber adds that Chegg’s consideration of strategic alternatives for Required Materials could be a possible catalyst for the stock.
Chegg Reports 2021 Financial Results and Gives 2022 Guidance
Chegg, Inc. (NYSE:CHGG), the leading student-first connected learning platform, reported financial results for the three and twelve months ended December 31, 2021. Chegg reported Q4 adjusted EPS of 38c versus the consensus estimate of 31c. The company reported Q4 revenue of $207.5M versus the consensus estimate of $195.2M.
“During these complicated times, the Chegg team continued to execute extremely well, with Chegg Study Pack take rates outperforming our expectations and retention rates reaching all-time highs, both of which positively impacts subscriptions, ARPU, and margins for Chegg Services,” said Dan Rosensweig, CEO & President of Chegg, Inc. “Students depend on Chegg as an important part of their learning journey and the momentum we experienced in the fourth quarter of 2021 is continuing into 2022.”
Q4 2021 Highlights:
- Total Net Revenues of $207.5 million, an increase of 1% year-over-year
- Chegg Services Revenues grew 6% year-over-year to $187.2 million, or 90% of total net revenues, compared to 86% in Q4 2020
- Net Income was $24.3 million
- Non-GAAP Net Income was $63.5 million
- Adjusted EBITDA was $78.0 million
- 4.6 million: number of Chegg Services subscribers, an increase of 5% year-over-year
Full Year 2021 Highlights:
- Total Net Revenues of $776.3 million, an increase of 20% year-over-year
- Chegg Services Revenues grew 29% year-over-year to $669.9 million, or 86% of total net revenues, compared to 81% in 2020
- Net Loss was $1.5 million
- Non-GAAP Net Income was $215.4 million
- Adjusted EBITDA was $265.9 million
- 7.8 million: number of Chegg Services subscribers, an increase of 18% year-over-year
Total net revenues include revenues from Chegg Services and Required Materials. Chegg Services primarily includes Chegg Study, Chegg Writing, Chegg Math Solver, Chegg Study Pack, Mathway and Thinkful. Required Materials includes print textbooks and eTextbooks.
📺🚨📉 Chegg Stock CRASHED Over 70%! TIME to BUY?! CHEGG (CHGG) Stock Fundamental & Technical Analysis
📉 CHGG Stock Technical Analysis
The short-term trend is neutral, while the long-term trend is still negative. CHGG is part of the Diversified Consumer Services industry. There are 73 other stocks in this industry, CHGG did better than 52% of them. CHGG is currently trading near the lower end of its 52-week range, which is not a good sign. The S&P500 Index is trading in the upper part of its 52-week range, so CHGG is lagging the market.
There is a resistance zone ranging from 30.70 to 31.12. This zone is formed by a combination of multiple trend lines in multiple time frames.
CHGG has a poor technical rating and the quality of the setup is also only medium at the moment. CHGG stock has a Setup Rating of 4 out of 10. Prices have been consolidating lately. Click here to sign up for email alerts on when CHGG stock consolidates and has a Setup Rating of 8 or higher.